Bitcoin (BTC) has recently shown strong correlations with global liquidity trends, fueling speculation about a potential rally to $105,000. As liquidity injections continue, Bitcoin’s price has surged from recent lows, attracting the attention of traders and investors alike. With key technical levels in focus, the question remains: Can Bitcoin break through resistance and reach new highs?

Liquidity Injections Driving Bitcoin’s Price Surge

Bitcoin’s price has historically followed the trends in global liquidity, particularly the M2 money supply. Recent data indicates that as global liquidity rises, Bitcoin often sees a corresponding increase in value. The latest uptick in the M2 money supply has coincided with Bitcoin’s recovery from lows near $75,000, suggesting that the cryptocurrency could be gearing up for a significant move toward the $105K mark.

Bitcoin’s price action, alongside global liquidity flows, reveals a strong correlation. When liquidity injections occur, Bitcoin typically experiences a price surge. With the most recent data showing a recovery in global liquidity, Bitcoin’s price has bounced back, and if this trend continues, further capital inflows could propel Bitcoin to higher price levels.

The rebound at a critical point where liquidity increased strongly is a bullish signal for Bitcoin. Traders are watching closely to see if the cryptocurrency can maintain this momentum. If liquidity continues to rise, Bitcoin could see a sustained rally toward the $105K level.

Bitcoin’s Realized Cap Signals Market Confidence

Another factor supporting a bullish outlook for Bitcoin is its realized cap, which continues to grow. The realized cap represents the total value of all Bitcoin at the last transaction price, acting as a proxy for investor sentiment and market strength. A steadily increasing realized cap indicates that capital is still flowing into the market, despite short-term price fluctuations.

According to blockchain analytics firm Glassnode, Bitcoin’s realized cap has steadily risen, signaling confidence from investors. This ongoing growth in realized cap suggests that Bitcoin may have a solid foundation for pushing through key resistance levels. As more capital enters the market, Bitcoin’s price could see upward momentum, especially if the broader economic environment remains favorable.

Key Technical Levels to Watch

Bitcoin’s price action is now closely tied to key technical levels, with traders focusing on the moving averages to assess future price movements. At the time of writing, Bitcoin’s 50-day moving average (MA) sits at around $88,926, which acts as the first major resistance level. To confirm a sustained bullish trend, Bitcoin must break through this level.

Additionally, the 200-day moving average at $96,392 represents another critical resistance point. Breaking above this level would signal a strong bullish trend and open the door for Bitcoin to target higher levels, including the $105K mark. If Bitcoin can clear these resistance levels with strong volume, it could confirm the bullish breakout that many traders are anticipating.

On the downside, immediate support for Bitcoin appears to be in the $80K-$81K range. If Bitcoin falls below this zone, it could invalidate the current bullish scenario, leading to a possible retest of the $75K support level. Traders are closely monitoring this support zone, as any breakdown could dampen the chances of a rally toward $105K.

Outlook for Bitcoin’s Rally to $105K

For Bitcoin to reach $105K, two main factors must align. First, sustained liquidity injections from global money supply growth could drive more capital into Bitcoin, providing the fuel needed for a significant price surge. Second, Bitcoin must break key resistance levels—$88K and $96K—while maintaining strong volume to confirm a bullish breakout.

While the current setup looks promising, Bitcoin still faces hurdles before confirming a move to new highs. If liquidity conditions remain favorable, the uptrend could accelerate. However, traders should remain cautious of any sudden changes in macroeconomic trends that could impact liquidity and, in turn, Bitcoin’s price action. With market conditions in flux, Bitcoin’s journey to $105K will depend on a combination of liquidity trends, investor confidence, and technical breakouts.